Acquisitions

6 Months Ended

May 01, 2015

Business Combinations [Abstract]

Acquisitions

Note 11 – Acquisitions

On January 31, 2015, the Company acquired the defense, aerospace and training display (DAT) business of Belgium-based Barco N.V. (Barco) for €150 million, or approximately $171 million, in cash.  The Company incurred a $2.9 million foreign currency exchange loss in the funding of the acquisition in the first fiscal quarter of 2015.  The Company financed the acquisition primarily using international cash reserves, with the balance funded by borrowings under its existing credit facility.  The display business develops and manufactures visualization solutions for a variety of demanding defense and commercial aerospace applications.  The display business is included in our Avionics & Controls segment.

The following summarizes the allocation of the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition.  The fair value adjustment for inventory was $7.1 million, which will be recognized as cost of goods sold over 13 months, the estimated inventory turnover.  Acquisition related costs of $3.3 million have been recognized as selling, general and administrative expense.  The purchase price includes the value of existing technologies, the introduction of new technologies, and the addition of new customers.  These factors resulted in recording goodwill of $63.5 million.  The amount allocated to goodwill is not deductible for income tax purposes.

In Thousands
As of January 31, 2015
Current assets	$	80,400
Property, plant and equipment		4,188
Intangible assets subject to amortization
Programs (15 year average useful life)		53,013
Trade name (10 year average useful life)		452
Contracts (3 year average useful life)		3,161
Goodwill		63,508
Other assets		3,401
Total assets acquired		208,123
Current liabilities assumed		33,368
Long-term liabilities assumed		3,685
Net assets acquired	$	171,070

On December 20, 2013, the Company acquired Sunbank for $51.7 million.  The purchase price included $5 million in additional contingent consideration based upon achievement of certain sales levels over a two-year period.  Sunbank is a manufacturer of electrical cable accessories, connectors and flexible conduit systems.  Sunbank is included in the Sensors & Systems segment.